Local News

Third medical marijuana license gets approval

Board to attorney: Prepare de-Brucing ballot question

The Log Lane Village Board of Trustees on Wednesday night approved 6-0, with Trustee Robin Mastin absent, a third medical marijuana establishment license, this one for Nature's Herbs & Wellness Center II.

But before they did that, the trustees also held multiple public hearings and approved several measures that allowed them to give the license for John and Alicia Rotherham's medical marijuana center their approval.

First, the board held a public hearing on the proposed zoning for Rotherham Annexation Phases 1, 2 and 3, which includes 17216, 17222, 17224 and 17280 N. Frontage Road, all now part of Log Lane Village.

"This is sort of the next logical step in bringing this annexed land under the jurisdiction of the town," Town Attorney Carmen Beery said over speakerphone.

The Rotherhams requested commercial zoning for their land, and Beery agreed this seemed "consistent" with the neighborhood, although she advised the board to hear all the evidence at the hearing and then decide.

For their part, the Rotherhams reiterated what they previously told the board, that they wanted to "come in and benefit the town."

One of those benefits could be helping the town gain the money to pay off its water tower debt, John Rotherham said, drawing sounds of approval from the board.

Alicia Rotherham said their plans included making their establishment "look good" before they open.

John Rotherham added that they also would seek a recreational marijuana license from the board with a goal of opening that end of their business by Oct. 1.

After hearing that Marshal Fred Cook had no concerns about the proposed commercial zoning and there being no one from the public wishing to speak, Mayor Ed Parker closed the hearing.

The board proceeded to vote and approved the commercial zoning designation for the Rotherham Annexation.

Then the board held a second public hearing about the Rotherhams' application for a license for a medical marijuana center and an application for an optional premises cultivation operation at Nature's Herbs & Wellness Center, 17216, 17222, 17224 and 17280 N. Frontage Road in Log Lane.

The official street and mailing addresses of this land in Log Lane Village are still pending, according to Town Clerk Kim Alva.

This time, not much more was said beyond what was legally required from the town clerk, town attorney and the board.

The Rotherhams did reaffirm what they said at the first public hearing only minutes earlier, and town resident Bert Brown said he thought the Rotherhams' marijuana center would be "a great thing for John (Rotherham), for the town and for all of us." With that, the mayor closed the hearing.

The board then voted to approve the Rotherhams' license for the medical marijuana center and cultivation operation, as well as approving the written findings about the related applications.

The state still has to approve those applications, though.

Medical marijuana dispensary and cultivation licenses start with the local government and then move to the state. Recreational retail marijuana licenses first go to the state, and then come back to the local authority if given state approval.

Rotherham said they have an appointment Friday with the state authority about their application for a recreational retail marijuana license in Log Lane.

Ballot question

The board also directed Beery to prepare one ballot question for a coordinated election in November, but it would not be about seeking a new tax.

Instead, if approved by town voters, it would be to allow Log Lane to keep and spend the money generated by the town sales tax that is already in place, instead of having to issue refunds to taxpayers once collections reached limits set under the Taxpayers' Bill of Rights.

Adding a new tax specifically related to marijuana was something the board previously discussed and had been considering for Wednesday night's meeting, they heard compelling reasoning that night to change directions — at least for this election.

Rotherham asked the board to "give us a year's chance" and "let us get our doors open before you start taxing us."

He pointed to the 1.5 percent excise that Garden City imposes and where he owns Nature's Herbs & Wellness Center I, which already has been in business for multiple years.

"I don't mind a small excise tax, but it's going to take a while to get my plant count up," Rotherham said, pleading his case to the board not to seek to add more taxes related to sales or transactions right away. "If it's immediate, they're going to go back to the black market. The town's already going to reap the benefit on everything sold here."

"I think that's a good idea," Trustee Martha Manion said.

Beery pointed out that the board should consider the effect any potential new tax may have on industry, but make the choice that is right for the town.

"It's strictly a policy choice for you," she said.

"I think we ought to give them a year," Manion said.

Trustee Shawn Greenwell agreed with her: "If we scare them out, they'll go to another town."

Rotherham added that "every bit of money I make goes back into my business."

The board decided not to have Beery pursue drafting a ballot issue for a new tax.

But the trustees did direct Beery to draft the other ballot question, commonly called a de-Brucing measure, which would "authorize the town to retain and spend money in excess of what the TABOR limit would be."

That refers to Douglas Bruce, the author and main proponent of TABOR, which is an amendment to the Colorado Constitution.

"It would permit the town to retain the money without having to do very complicated math every year," Beery said. "I think it's a good idea."

That was especially due to how that complicated math from TABOR's formula includes a "ratcheting-down effect," she said, which was likely to mean lower sales tax collections this year without marijuana sales would lead to the town being able to keep and spend less of next year's higher sales tax collections with pot sales included in totals.

The board agreed that it was a good idea and asked Beery to put the de-Brucing ballot question together.

The board also directed Beery and Alva to get everything set for the town to hold a coordinated election with Morgan County in November.

Because of looming deadlines for this, the board set a special meeting for 6:30 p.m. Thursday, Aug. 21, at Town Hall, although this date is subject to change.

Other action

The board also:

• Approved spending up to $380 to have Albatross Inspection inspect the town's backflow preventers.

• Approved having Public Works Director Bert Kammerzell get the fire extinguishers inspected, as required by the town's insurer, CIRSA; no specific dollar figure was attached to this in the approval motion.

• Approved paying up to $900 for parts and repairs to fix the town's Bush Hog.